The Original Pancake House is serious about pancakes and, as the company's website notes, its mission is to serve the finest pancakes available. New franchisees join a roster of existing franchises across the country where batters and sauces are made fresh at every location, using recipes based on grade AA eggs, unbleached hard wheat flour and the company's own sourdough starter.
Company History and Lineup
With corporate headquarters in Portland, Oregon, the Original Pancake House was founded in 1953 and as of 2014, had over 150 locations throughout the U.S. The company approves about three to five new franchises annually, according to franchising resource Franchise Help. Entrepreneurs interested in franchising look forward to a breakfast-based menu based on a third-generation family tradition that operates only during the day. Signature dishes include the Apple Pancake, omelets, waffles and crepes. Prospective franchisees should contact the company in Portland and ask for its most recent franchise disclosure document, and express interest in franchising.
Initial and Ongoing Fees
As of its 2014 Franchise Disclosure Document, the Original Pancake House requires an initial franchise fee of $60,000. The company does not offer financing for this fee, and franchise assets cannot be used to secure funds without approval. Other startup fees cover training expenses, furniture and decor, signage, inventory and supplies. Total fees can range from the high $300,000s to mid-$900,000s. The royalty fee to the company is 2 percent of monthly gross receipts.
The Original Pancake House specifies in its franchise disclosure document what its expectations and specifications are for the franchise. In matters of real estate, a typical restaurant will be 3,500 to 4,000 square feet and seat about 120 patrons. Parking spaces should not be fewer than 50. OPH doesn't estimate costs of buying land or constructing your own building, but it gives ballpark figures for what overall real estate improvements might be. The company says costs vary greatly depending on numerous factors such as size, configuration, labor and owning-versus-leasing.
Obligations and Restrictions
Franchisees are required to buy the company's proprietary stabilizer base, as well as certain equipment, materials and supplies as designated by the company in its operating manuals. Among franchisee's obligations are compliance with standards and policies, trademarks, customer service requirements, territorial development, insurance and audits. For its part, the company will approve sites, designate exclusive areas, provide standards, manuals and training, and after the restaurant opens, advisory guidance on operational improvements.